A wagering agreement is a type of contract in which individuals promise to pay each other a certain sum of money or something of value related to an event that is uncertain or unknown at the time of the contract. For example, two individuals may bet on the outcome of a football game and agree to pay a certain amount of money to the winner.
However, wagering agreements are illegal in most countries, including India, as they are considered to be a form of gambling. The Indian Contract Act of 1872 makes it clear that all wagering agreements are void and unenforceable. This means that if two parties enter into a wagering agreement, they cannot legally enforce the terms of the agreement. The same is true for online gambling activities, which are also illegal in India.
It is important to note that there is a distinction between a wagering agreement and a contract based on skill and knowledge. For example, a contract between two individuals to play a game of chess for a cash prize is not considered a wagering agreement because the outcome of the game is based on skill and knowledge rather than chance. Similarly, competitions such as quizzes or puzzle-solving contests are not considered wagering agreements as they require skill and knowledge to win.
In conclusion, it is important to understand that wagering agreements are illegal and unenforceable in India. Engaging in online gambling activities can also result in legal consequences. Contracts based on skill and knowledge are not considered wagering agreements and are legal.